The NSW Government is accelerating two major rezonings in Shellharbour to unlock approximately 5,700 new homes, create jobs, and help drive the region’s transformation.
With the Illawarra-Shoalhaven projected to be the fastest-growing region in NSW, the Government says the rezonings are a critical step toward meeting future housing, health and infrastructure needs.
“These rezonings will help shape Shellharbour’s future as a world-class health and innovation precinct, a place where people can access first-rate healthcare, live close to where they work, and be part of a thriving community,” said Minister for Regional Health and the Illawarra South Coast, Ryan Park.
“By unlocking new homes near the new Shellharbour Hospital, we’re building a stronger, more connected health district that supports nurses, doctors, and essential workers to live locally.
“This is a major step in delivering the infrastructure and services the Illawarra Shoalhaven needs as it becomes one of the fastest-growing regions in NSW.”
The two sites are:
Shellharbour City Centre (state-led) – approximately 5,000 new homes
This 125-hectare rezoning will transform Shellharbour into a modern, inclusive city centre with a mix of low to high-density housing and expanded public spaces.
Key features include:
- Redevelopment of former Shellharbour Hospital and TAFE sites
- New parks and walkable streets
- Proximity to the $781.9 million new Shellharbour Hospital
The proposal includes a diverse mix of low, mid-rise, and higher-density housing and improved open space, with more parks and upgraded footpaths to make it easier to get around on foot.
The proposal reimagines the former Shellharbour Hospital and TAFE sites for additional homes in walking distance to the city centre.
Public exhibition of the proposal is expected in the second quarter of 2026, with finalisation anticipated in late 2026.
New Shellharbour Hospital Precinct (state-assessed) – approximately 700 new homes
Located next to the new Shellharbour Hospital, this 90-hectare precinct will support:
- Medium to high-density homes, including housing for key workers
- Shops, private health services, and short-stay accommodation
- A 150-room facility for families visiting patients.
The new homes would support key workers, including healthcare and hospital staff, making it easier for them to live close to where they work. Public exhibition of the proposal is expected in 2026.
“By bringing more homes closer to the new Shellharbour Hospital and the growing city centre, we’re helping essential workers like healthcare workers, teachers and hospital staff find affordable housing within the community,” said Minister for Planning and Public Spaces, Paul Scully.
The rezonings support the long-term vision of the Illawarra Shoalhaven Regional Plan 2041, which outlines a blueprint for population growth, housing supply, job creation, and improved transport.
The exact number of new homes to be delivered across the sites will be determined during the rezoning process.
The proposals were independently assessed by a departmental evaluation panel, with oversight from a probity advisor for transparency and integrity measures.
The new rezoning proposals build on the NSW Government’s earlier announcements of State-led and State-assessed rezoning projects. For more information, visit State Significant Rezoning Policy | Planning.
